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Modelling the Stochastic Component of Behaviour in Experiments: Some Issues for the Interpretation of Data

  • Graham Loomes

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    This paper considers some of the questions raised by the fact that people's behaviour—including their behaviour in experimental environments—has a stochastic component. The nature of this component may be crucial to the interpretation of the patterns of data we observe and the choice of statistical criteria for favouring one hypothesis at the expense of others. However, it is arguable that insufficient consideration has been given to the way(s) in which the stochastic element is modelled. The paper aims to explore some of the issues involved. Copyright Springer Science + Business Media, Inc. 2005

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    File URL: http://hdl.handle.net/10.1007/s10683-005-5372-9
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    Article provided by Springer in its journal Experimental Economics.

    Volume (Year): 8 (2005)
    Issue (Month): 4 (December)
    Pages: 301-323

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    Handle: RePEc:kap:expeco:v:8:y:2005:i:4:p:301-323
    Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=102888

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    5. Loomes, Graham & Starmer, Chris & Sugden, Robert, 1991. "Observing Violations of Transitivity by Experimental Methods," Econometrica, Econometric Society, vol. 59(2), pages 425-39, March.
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    17. Tversky, Amos & Kahneman, Daniel, 1992. " Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
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    19. Camerer, Colin F, 1989. " An Experimental Test of Several Generalized Utility Theories," Journal of Risk and Uncertainty, Springer, vol. 2(1), pages 61-104, April.
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